Goods purchased for future use in the business, such as supplies, are recorded as
A)assets.
B)revenues.
C)expenses.
D)liabilities.

Question

Quizplus · Accepted Answer

Goods purchased for future use in the business such as supplies are considered assets. This is because they have the potential to provide future economic benefits to the business through their use. Expenses, on the other hand, are costs incurred in the operations of a business that have already been consumed and do not have future benefits. Revenues are income earned from the sale of goods or services, and liabilities are obligations owed to others.

Goods Purchased for Future Use in the Business, Such as Supplies